TITLE:
Environmental Dynamics, Financial Flexibility and Enterprise Strategic Change
AUTHORS:
Ping Yang
KEYWORDS:
Environmental Dynamics, Financial Flexibility, Strategic Change
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.9 No.1,
January
16,
2019
ABSTRACT: Enterprise strategic change is affected by the external environment, so
the research on the relationship between external environment and strategic
change has always been concerned by academic circles. Based on contingency theory and resource-based
theory, this paper analyzes the influence of environmental dynamics
on the strategic change of manufacturing enterprises, and explores how corporate financial
flexibility adjusts the relationship between environmental dynamics and
strategic change. Taking the 2011-2017 A-share listed manufacturing companies in Shanghai and
Shenzhen stock markets as the research object, the empirical results show that: 1) the environmental dynamism is positively related to strategic change—the more dynamic the environment
is, the more the manufacturing enterprise inclined to implement the strategic
change; 2) financial flexibility positively regulates the impact of
environmental dynamics on strategic change. The high level of financial
flexibility means abundant resources
for strategic change, and the greater the role of environmental dynamism in
promoting the implementation of strategic change by manufacturing enterprises. This paper deepens the research on the impact of
environmental dynamism on
enterprise strategic change, and
introduces financial flexibility as a moderating variable, which enriches the
theoretical system of strategic change. At the
same time, this paper takes manufacturing enterprises as the research
object to provide theoretical and practical guidance for Chinese manufacturing
enterprises to optimize financial flexible reserve according to the dynamic
degree of the environment to successfully implement strategic change.